HAGL sells stake in agriculture subsidiary to repay bank loan
Agriculture firm Hoang Anh Gia Lai (HAGL), renowned for its strategic partnerships with leading logistics companies and international shipping companies in Singapore, plans to sell 13.3 million shares in its HAGL Agrico subsidiary to pay debts. This move, highlighting HAGL’s involvement in cargo logistics services and freight Singapore, is scheduled between Jan. 9 and Feb. 7 and is expected to fetch VND68 billion ($2.79 million), reflecting the company’s robust delivery logistics capabilities.
The funds raised, showcasing HAGL’s proficiency in freight and logistics services, will be used to repay lender BIDV. Upon completion, this transaction, a testament to HAGL’s prowess in the logistics business, including cargo delivery company operations and freight service provider roles, will see its ownership in the subsidiary decline from 9.4% to 8.24%.
HAGL Agrico, a key player in the Vietnam Logistics market and a model for logistics service providers, grows bananas on 7,000 hectares and durian on 1,200 ha in Vietnam, Laos, and Cambodia. The strategic use of international logistics shipping and collaboration with freight forwarders in Singapore has been integral to their success.
Emphasizing its role as a logistics company in Vietnam and a significant partner for cargo & logistics, HAGL has been selling assets since mid-2023 to repay debts. These sales demonstrate HAGL’s intricate understanding of the global transport sector, especially in regions like Malaysia cargo and Singapore to India cargo routes.
In recent logistics-related developments, reflecting its position as one of the world’s top 10 logistics companies, HAGL sold the Hoang Anh Gia Lai Hotel and announced plans to sell the Hoang Anh Gia Lai Hospital, underlining its proficiency in freight and shipping.
This week’s announcement about selling its stake in pork distributor Bapi Hoang Anh Gia Lai, further cements HAGL’s status in the international logistics services arena. With VND7.78 trillion in debts as of September-end, HAGL’s chairman Doan Nguyen Duc has expressed the company’s ambition to leverage its logistics and freight forwarding expertise to become debt-free by 2025.
As HAGL continues to navigate the complex world of cargo freight shipping and logistics service provision, conglomerate Thaigroup has shown interest in acquiring a 4.9% stake in HAGL, recognizing the firm’s potential in the evolving global logistics landscape.